Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: Jules B. Garfunkel who wrote (3222)	6/8/1998 1:05:00 PM
From: j g cordes	Read Replies (1) \| Respond to of 8218

How were they/are they able to lower their tax rate?

To: Jules B. Garfunkel who wrote (3222)	6/8/1998 1:23:00 PM
From: j g cordes	Read Replies (1) \| Respond to of 8218

Here's a good one Jules.. "Motorola Inc. (MOT) 51 15/16 +1: Gruntal & Co. reiterates "buy" rating, but lowers estimates on semiconductor and cell phone equipment maker following last week's announced structuring move; while restructuring should position MOT for the upcoming demand cycle following small moves over the last two years, which were not enough, latest restructuring is welcomed but will reduce earnings for the next couple of years; lowers Q2 EPS from $0.25 to a loss of $0.05 a share, Q3 from $0.40 to $0.20 a share, FY98 from $1.40 to $0.70" How can they rate it a buy while saying "will reduce earnings for the next couple of years." ?? and cutting in half FY 98

To: Jules B. Garfunkel who wrote (3222)	6/8/1998 7:02:00 PM
From: Arrow Hd.	Respond to of 8218

Jules, what a monster post! I dont even know where to begin! On a serious note as usual, you have some interesting points. I dont know what your shorting strategy is but I agree there is room here to play the charts and move money around. Short in the high 120s and cover in the teens. Anyway, let me go out on a limb and say that I see a repeat of the first quarter. Make the earnings estimate (it will be juggled by the street until IR is happy), low single digit revenue growth (Gerstner said dont change your current models for the next few quarters), currency and asian hysteria clouding the issues, tax rates that work, buybacks to do what is necessary to do, and so on. Now that may not be a pretty quarterly report but I would not short against it (or buy puts) since most quarters with marginal reports have been brushed off by the spin doctors. There were a few exceptions but long term investors were made whole relatively quickly. So with a moderate summer rally, a "made" second quarter, and analysts thinking about those double digit growth rates in 1999 I see 135 to 140 by the end of August but then we should all think about cash because there are some fundemental problems out there in this global economy that can cause pain and anguish and we are not immune to any of them long term. The problems either get corrected or our markets will eventually correct.